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May 8, 2023 • Issue 23:05:01

Digital wallets win over

ecommerce shoppers

Cards remain an "essential part" of the shift in payment
habits, FIS wrote. Thirty-one percent of Americans sur-
veyed by the firm said they funded their wallets with cred-
it cards; 33 percent said they used debit cards to fund their
digital wallets.

(A quick point of reference: the terms digital wallets and
mobile wallets tend to be used interchangeably. Digital
wallets were created primarily to digitize payments be-
tween friends and family, PayPal being the first successful
such wallet. Mobile wallets are a subset of digital wallets
that leverage near field communication technology on mo-
bile devices.)

Banks seek seat at the table
Against this backdrop, many of the largest banks in the
United States are preparing to launch a new digital wallet
for ecommerce. Named Paze, the wallet is being readied by
By Patti Murphy Early Warning Services for a limited rollout this summer.

fter a steady eight-year climb, digital wallets "We'll be loading 150 million [credit and debit] cards onto
have become a leading online payment method wallets that can be used on day-one," said James Anderson,
in North America. The just released FIS Global a former Mastercard executive who is now managing direc-
A Payments Report revealed the use of digital wal- tor for Paze. These are cards issued by EWS's seven owner
lets by consumers in the United States and Canada rock- banks—Bank of America, Capital One, JPMorgan Chase,
eted from 14 percent in 2014 to 32 percent in 2022. By 2026, PNC Bank, Truist, U.S. Bank and Wells Fargo—that have
the report forecasts, digital wallets will make up 41 percent logged previous ecommerce activity, he noted.
of ecommerce transactions and 16 percent of POS transac-
tion value in the two countries. Plans are to open Paze to other financial institutions and
their cardholders in the fourth quarter, Anderson said.
In the United States, digital wallets ranked tops in terms of
ecommerce values (32 percent), according to the FIS report,
with credit cards close behind (30 percent) and debit cards
trailing at 20 percent. Digital wallets made up 12 percent of Contributed articles inside by:
the value of U.S. POS transactions in 2022, the report said.

Morning Consult's market analysis revealed that about Alexis Rockenbach ...............................................................................20
two-thirds of American adults use digital wallets to make Nick Cuuci................................................................................................28
purchases; however, most use multiple wallets. For exam-
ple, nearly nine out of 10 consumers who consider PayPal Adam Atlas ..............................................................................................30
to be their primary wallet, also reported using Venmo (89
percent), Cash App (89 percent), Google Pay (89 percent)
and Apple Pay (88 percent).
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